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Net Neutrality Committee Report NET NEUTRALITY DoT Committee Report May 2015 ACKNOWLEDGEMENTS “Appreciation is the highest form of prayer, for it acknowledges the presence of good wherever you shine the light of your thankful thoughts” ALAN COHEN Every journey starts with a step. The committee commenced its journey in the midst of a vigorous debate that questioned different dimensions – constitutional, economic, technical and commercial. During its journey through consultative pro- cess, the committee was exposed to the wisdom existing in the digital community in India including civil society, OTT players, Telecom Service Providers and others. toThe the committee vexed issue. was The gratified committee by the takes approach this opportunity adopted by to thankall participants one and all in who the travelledconsultations with to the constructively committee on support this journey and advise for their the committeeconstructive in approach,finding a path the studied advice and support. The committee hopes that its report will be under- stood in this spirit of constructive co-operation. Our nation faces several develop- mental challenges and many of these challenges can be resolved through solutions emerging from the digital space. The committee has drawn inspiration from this thought and approached the issue with the diligence expected of it and is conscious of the burden that its recommendations may affect the course of policy for years to come. First of all, the committee would like to thank all participants in consultations and respectfully acknowledges their contributions and advice. The volumes of sugges- tions, data, research papers and supporting documents presented to the committee represent the robust and active participation of all participants in this consultative exercise. No other consultation exercise in the Department of Telecommunications has seen the participation of such a wide range of participants from academics to activists and service providers to users. agencies that helped us examine the issues from different public policy perspec- tives.The committee The committee has also is benefittedindebted to from Shri the G Pinputs Srivastava provided and by Shri other Shrikant government Panda from the Department of Telecommunications for their valuable contribution. The committee constituted a Working Group to sift through the mass of suggestions and papers and assist it in its work. Immense effort has been put in by this working group to do the background research and spent many sleepless nights in stitch- ing together the wide diversity in thoughts encountered during consultations. The completion of the report would not have been possible in the short time that it had but for their dedicated efforts. Our special appreciation goes out to this group of young, dynamic officers - Abhay Shanker Verma, YGSC Kishore Babu, N S Deepu, whoBrajesh worked Mishra, tirelessly Radhacharan and cleared Shakya, the J. pathRamesh, for us Bijoy to bring Kumar clarity Nath, in G. our Brahmaiah, journey. Gulab Chandra Rai, R. Saji Kumar, Ritu Pande, Jitendra Kumar and Pankaj Salodia The committeecommittee isrecognises indebted tothat these some young work officers has been and wishesdone, a them lot more a bright is needed future. to mull over these recommendations and translate them into policy actions. The committee hopes that its recommendations bring some clarity to a heated debate and brings all players in digital space together in carrying forward the enormous for whom the digital space can be liberating. potential that exists in our country to fulfil the aspirations and dreams of the young The committee submits this report and hopes that as one journey ends, another starts in a spirit of constructive co-operation. (Chairman) A.K. Bhargava A.K. Mittal Shashi Ranjan Kumar (Member) (Member) (Member) V. Umashankar G. Narendra Nath R.M. Agarwal (Member) (Member Convener) Contents CHAPTER 1 - INTRODUCTION .......................................................................................................... 9 CHAPTER 2- NET NEUTRALITY – THE WAY WE UNDERSTAND ...................................... 12 CHAPTER 3 - NET NEUTRALITY – INTERNATIONAL SCENARIO .................................... 16 .............................. 20 CHAPTER 4 - STAKEHOLDER PERSPECTIVE OF NET NEUTRALITY ............................. 32 CHAPTER 5 - INNOVATION, INVESTMENT & ENTREPRENEURSHIP ............................. 35 CHAPTER 76 - INTERNET:PUBLIC POLICY FREEDOM PERSPECTIVE OF EXPRESSION OF NET NEUTRALITY AND USER RIGHTS ................ 41 ................................ 44 CHAPTER 8 - OTT SERVICES AND IMPACT ON TELECOM ........................................................... SECTOR 50 CHAPTER 9 - NET NEUTRALITY & IMPACT ON TSPs ........................................ 54 CHAPTER 10 - TRAFFIC MANAGEMENT & NET NEUTRALITY ........................................................................................................................... 61 CHAPTER 11 - CONTENT DELIVERY, INTERCONNECTION & MANAGED SERVICES .......................................................................... 65 CHAPTER 12 - TARIFFS & NET NEUTRALITY .............................................. 71 CHAPTER 13 - LEGAL, LICENSING & REGULATORY........................................................................... ISSUES 76 CHAPTER 14 - SECURITY & PRIVACY ISSUES ........................... 79 CHAPTER 1516 - ENFORCEMENT,WAY FORWARD ....................................................................................................... OVERSIGHT & CAPACITY BUILDING 82 CHAPTER 17 - SUMMARY OF RECOMMENDATIONS............................................................. 85 ................................................................. 90 ANNEXURE-I - NOTIFICATION OF GOVERNMENT ............................................................ 91 ANNEXURE-II - LIST OF INVITEES / PARTICIPANTS .................................................................. 97 ANNEXURE-III - LIST OF RESPONSES RECEIVED .............................................................................102 GLOSSARYANNEXURE-IV .............................................................................................................................................. - SUGGESTED GUIDELINES 103 REFERENCES ........................................................................................................................................105 NET NEUTRALITY - DoT Committee Report - May 2015 CHAPTER 1 INTRODUCTION “The internet is a reflection of our society and that mirror is going to be reflecting what we see. If we do not like what we see in that mirror the problem is not to fix the mirror, we have to fix society.” — VINT CERF 1.1 The Internet has transformed the world and society like never before. It has provided a platform for new opportunities through innovation. Internet has fostered the supremacy of ideas rather than capital. It is a universal platform that uses the same standards in every country, so that every user can connect to every other user with physical distances becoming irrelevant in the networked world. The Internet is a public resource that has no ownership, but is available to all those who are digitally connected. 1.2 In India, tremendous growth in telecommunications and convergence of communication and information technologies has created a unique digital platform for advancing the developmental goals. Digital India programme envisions access to digital infrastructure as a utility to every citizen, thereby making available high speed broadband internet as a core utility for delivery of services to citizens. The program envisions e-governance and services on demand and aims at digital empowerment of citizens. 1.3 India has demonstrated to the world its capacity to develop innovative business models in affordable mobile telephony suited to the requirements of a developing country. It has 997 million1 telecom subscribers and 99.20 million broadband subscribers with an access to internet at speeds higher than 512 kbps. Out of about 300 million2 subscribers accessing the internet, wire line media. Currently, both broadband and internet penetration in India isaround comparatively 93% subscribers low in the are global on wireless context. media, whereas 7% are on fixed 1 2 IAMAI Report The Indian Telecom Services Performance Indicators, October – December, 2015; TRAI report Jan 2015 9 Chapter 1 - Introduction 1.4 The telecom industry worldwide has experienced a paradigm shift from traditional voice to data. The rapid adoption of smart devices, availability of useful applications and online services are leading to significant amount tremendousof data traffic increase over the in networks.consumption The of increase bandwidth. in internet In India, and despite broadband rapid growthpenetration in data with in recentthe humongous years, voice growth continues in data to be traffic, predominant has led in to the a years, the growth in voice revenues is slowing down and may perhaps start reducingtelecom space in coming both inyears. terms of revenues and traffic. However, in the last few 1.5 There is a constant pressure for investment in network infrastructure and to expandIn India, capacities Internet trafficand increase is likely penetration. to increase Telecommanifold infrastructure, in the next few being years. a meet the network capacity demands brought about by increasing broadband penetration,capital intensive increasing industry, speeds will require and increasing significant data investments usage. Telecom by operators
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